Music & Games

Pennsylvania legal skill game operators oppose video gaming terminals

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June 8, 2021

Pennsylvania Skill, made up of operators of legal skill games, is opposed to legislation that provides a way for video gaming terminals to enter the state and trigger higher taxes on small businesses, according to a press release.

"Pennsylvania Skill has consistently taken the position of support for regulation and increased taxation of the skill game industry in a manner that supports Pennsylvania small businesses and does not cannibalize existing casino and lottery revenues," Mike Barley, a spokesman for Pennsylvania Skill, powered by Pace-O-Matic, said in the press release.

To this point, small business customers have yet to be included in the viewing or discussion of current gaming expansion legislation, he said.

"If this is a true effort to regulate true games of predominant skill, then legislation must be clear that this is not a backdoor for the proliferation of VGTs, which would be harmful to businesses and casinos and lottery," he said. "There is a big difference between VGTs and games of skill."

Early drafts of the legislation indicate the tax rate for skill games can exceed 50%, including what would be a tax revenue rate split of 50% between the state and the casino industry.

Legislation being introduced by state Sen. Gene Yaw and Rep. Jeff Wheeland supports regulation and enforcement of legal skill games and would provide guaranteed annual tax revenue for the state totaling $250 million, according to the release. It also supports businesses, social clubs and veterans groups that count on revenue from skill games to pay for improvements, increase staff and provide employee health benefits.